Axon Enterprise (AXON) Falls More Steeply Than Broader Market: What Investors Need to Know
Axon Enterprise (AXON) closed the latest trading day at $247.43, indicating a -1.67% change from the previous session's end. This change lagged the S&P 500's 0.8% loss on the day. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 1.18%.
Heading into today, shares of the maker of stun guns and body cameras had gained 8.59% over the past month, outpacing the Industrial Products sector's gain of 6.76% and the S&P 500's gain of 3.4% in that time.
Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 22.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $418.97 million, up 24.64% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Axon Enterprise presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Axon Enterprise is holding a Forward P/E ratio of 60.6. This valuation marks a premium compared to its industry's average Forward P/E of 21.79.
The Security and Safety Services industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 27, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
